THE EFFECT OF ACCOUNTABILITY AND TRANSPARENCY ON THE EFFECTIVENESS OF FINANCIAL MANAGEMENT IN VILLAGE AND NEIGHBORHOOD GOVERNMENTS IN THE BALEENDAH SUBDISTRICT

Abstract

This study analyzes the characteristics and the impact of accountability and transparency on the effectiveness of financial management in village and subdistrict governments in Baleendah Subdistrict. The analysis method used is multiple linear regression analysis. This method was employed to determine the extent of the influence of two independent variables on one dependent variable, followed by a t-test and an F-test to assess the significance level of this influence. The population of this study consisted of 3 villages and 5 urban neighborhoods, totaling 37 individuals. The sample was selected using purposive sampling, ensuring that it included everyone from top-level decision-makers to subordinates who were knowledgeable about and directly involved in financial matters. Based on the results of the descriptive analysis, accountability was found to be fairly good, transparency was found to be good, and the effectiveness of financial management was found to be fairly good. Furthermore, based on the results of the confirmatory analysis, both simultaneously and partially, accountability and transparency have a positive and significant effect on local government performance. The coefficient of determination was 79.4%, with the remaining 20.6% influenced by other factors not examined in this study. Partially, transparency has a greater influence than accountability